NGO and Business: Charity is good, but business relations are better
The Republic of Kazakhstan: Review
Aybek Dumbaev
NGO "Zhan" (Almaty)
What forms can the partnership between NGOs and business take? What factors prevent from successful cooperation between NGOs and business organizations? Ideally, cooperation between NGOs and business should be realized through partnership projects aimed at resolving social and economic problems. The definition of a partnership project in itself suggests involvement of two equal parties. Business can support the project financially; the non-government sector also can put some of its resources; but usually, an NGO is just an executor of the project which solves implementation issues. For instance, within the framework of a partnership project with an association of single mothers, a businessman might invest a sewing workshop. Benefits are clear: the NGO offers work to single women providing them with a not big but stable source of income; the businessman receives a part of the profit from solving the products and besides, the NGO takes all the responsibility in managing the workshop.
NGOs can provide business with commercial services (printing, training, marketing). Instead of paying for these services the company might support this or that activity of an NGO. In a word, well-defined business relations – “your money – our services” in which and NGO is not a "beggar" but full business partner.
Unfortunately, we have to admit that there are few successes in implementing partnership projects between NGOs and business. Business does not perceive NGOs as being professional and competent tot implement joint, very often costly projects. NGOs prefer to “beg” instead of putting a part of their material and human resources into projects. After all, it is easier to complain about your fate than to do the work which takes your time and efforts, isn’t it?
NGOs are able to change this situation. All it takes is to prove to businessmen in their activities that non-governmental organizations are not “importunate parasites”, but professionals that can bring profit to business.
Another form of a dialogue ”NGO-business” is based not upon business but ethical background. This is a kind of a dialogue when we hear the words ‘ charity’, ‘donations’, ‘compassion’. Charitable assistance of businessmen is mainly aimed at socially vulnerable groups of our society: disabled people, veterans, pensioners, children-orphans. It is necessary to note though, without any depreciation of the importance and necessity of such a support, that other essential social issues such as ecology, education, etc, are left aside. The reason for that is that our society perceives charity as a help for weak and disabled – survival of our never-dying communist mentality. Moreover, the support of long-term NGOs’ projects aimed at resolving social problems is mainly provided by big foreign enterprises working at our market, e.g. Chevron Munaigas Inc., Phillip Morris, Mobil, etc.
So, why oursocial problems are not solved by our capitalists? Why does our home business stand aside? I think, there are two reasons for that. The first reason is the lack of traditions of charity and sponsorship. It is kind of hard to see a former Communist Party member who changed his seat of a secretary of ‘raicom’ (district committee) to the seat of the director of a commercial company as a philanthropist. In civilized countries charity is considered to be a sort of advertisement. A positive image is a very expensive thing. A company with “humane” image will receive the population’s support and, consequently, additional profit. Besides, there are international standards according to which all the big enterprises are engaged in philanthropy. Unfortunately, our business structures are not trying to follow these standards in that matter. Why? There is another reason for that -- there are very scares tax benefits for sponsors and philanthropists that do not dispose business to charity.
The current situation could change if the Law on Philanthropy and Charity Organizations is passed in the Republic of Kazakhstan. The working plan of the government for this year already includes submission of the draft law for consideration of the Parliament. If the law is passed, there will be all the necessary conditions for real partnership between NGOs and businessmen aimed at resolving social and economic problems of our society.
But as there is no such a law yet and tax benefits for philanthropists are microscopical, it is useless and even not right to complain about heartless businessmen who do not want to help NGO no matter what. Business is business and a businessman counts every kopeck. Maybe, instead of “begging” NGOs should prepare a good proposal so that a businessman could receive profit from it together with NGOs.